Telecommunications Development : Policy Recommendations for Developing Countries

Reform of the telecommunications sector has been a worldwide policy trend since the United States, the United Kingdom and Japan drastically reorganized their domestic industries in the early 1980s. Competition has been introduced into a previously monopolistic telecommunications market by many developing as well as industrialized countries. In earlier periods, however, telecommunications monopolies effectively developed national telecommunications networks. Rushing to break up the monopolies could potentially involve certain risks unless it is done at the right moment and in the proper manner. By analyzing history, institutions and performance indicators for the telecommunications sectors in several countries, we show that institutional issue such as ownership does not affect the performance of the telecommunications sectors as much as is widely believed. Rather, a country's economy, an enterprise's autonomy and a government's attitude determine performance. Based on these findings, this thesis presents policy recommendations to foster the healthy growth of telecommunications in developing countries. Thesis Supervisor: Lee W. McKnight Title: Lecturer, Technology and Policy Program Thesis Reader: Richard de Neufville Title: Chairman, Technology and Policy Program